Brent crude is forecast to average around $105 a barrel in June and July, the US Energy Information Administration said, as traders weigh the easing of Middle East tensions against uncertain demand.
Forecasts diverge sharply further out. The EIA expects prices to fall toward an average of about $89 a barrel by the fourth quarter as supply chains normalize, while some bank analysts see Brent averaging well below that over the year.
Supply and demand in flux
The International Energy Agency said global oil demand is set to decline in 2026, a downgrade from earlier estimates, after higher fuel prices and wartime disruption cut deliveries. Global supply is also projected to fall this year before rebounding in 2027.
The result, analysts said, is a market caught between geopolitical relief and softer fundamentals, leaving prices volatile.
